Exam 9: Reaching Global Markets

From a cultural perspective, countries that are members of the European Union tend to act as a single entity.

A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the cooperative. This business would most likely be called a(n)

Which of the following countries has the highest GDP?

IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well as in the United States and Canada. Which of the following describes IKEA's level of commitment to international marketing?

A business partnership between a domestic firm and a foreign firm is known as

Cultural differences do not affect marketing negotiations and decision-making behavior.

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

The U.S. and Japanese economies are more integrated than are the U.S. and Canadian economies.

____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.

Scenario 9.2 Use the following to answer the questions. KFC opened its first franchised restaurant outside of North America in England in 1964. Now over a billion KFC chicken dinners are sold annually in more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries-to offer the customer passing by a preliminary view of their product. Refer to Scenario 9.2. KFC's establishment of international production/processing facilities is an example of

Select the true statement.

Scenario 9.1 Use the following to answer the questions. Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America. " Refer to Scenario 9.1. At what level of involvement in international marketing is Harley-Davidson with regard to its bikes?

Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier Industries is an example of a(n)

One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of

The Southern Common Market (MERCOSUR) includes

If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n)

Jackie is often surprised when she goes to other countries to learn that people do business so differently. For instance, in meetings Jackie is used to getting straight to the point and addressing any relevant issues. However, she has learned that in many countries businesspeople take the time to first make small talk and ask about the family before finally getting down to business. To Jackie this seems to make the meetings unnecessarily long and wastes valuable time. These cultural differences seem strange to Jackie because she is relying on her _____________.

When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis.

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

Scenario 9.2 Use the following to answer the questions. KFC opened its first franchised restaurant outside of North America in England in 1964. Now over a billion KFC chicken dinners are sold annually in more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries-to offer the customer passing by a preliminary view of their product. Refer to Scenario 9.2. Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China?